There are constraints that are worth knowing before rushing into physical gold: Storage costs: purchase of a safe in case of home storage or rental costs in case of storage by a third party banks, specialized company if stored at home, and the risk of loss, theft or even forgetting in the event of death is high. The margin of the intermediary who sells physical gold is often higher compared to a transaction in paper gold. This sector can attract crooks of all kinds, for example by cheating on the quality of gold, both buying and selling. It is therefore important to go through a trusted intermediary. The lack of liquidity on resale can be handicapping, for example for an ingot valued at $ 50,000. You will know it all from the Gold buyers Sydney.
Ready to invest in physical gold
Several options are available, knowing that for the first two, the purchase of a quantity of gold is done through an order, which can be at a limit or at market price, as for a share.
In a bank branch
The gold sales service in bank branches is in decline, due to a lack of profitability from the point of view of the banks. However, this solution has the advantage of dealing with a trusted intermediary, even if it means paying a higher margin. The purchased gold can be either withdrawn by the investor or stored in a safe rented by the bank.
With a specialized broker, in an agency or online
There are many brokers that specialize in selling gold. Transactions can take place in branches throughout country or online. Brokers are generally considered to be the best quality or price solution, provided you take the time to compare them, both in terms of reputation and displayed prices. In addition, brokers often offer a storage solution in safes located outside the banking system, in order to guard against a supposed non-return of assets in the event of bank failure or in bad weather.
In jewelry stores
This is economically the most questionable solution, because jewelry made from gold is naturally sold much more than the amount of gold it contains. However, going to a jewelry store is an easy solution.
If one is seduced by this possibility, it is necessary to invest in creations containing the purest possible gold, while keeping in mind that if the jewelry resale market is correlated with the price of gold, other parameters such as the technicality or the rarity of the piece are also taken into account. Therefore, the risk of reselling at a loss in the second-hand market is very high, but the solution has the merit of existing. Doesn’t the purchase of physical gold exactly match your specifications? The multiple purchasing possibilities via paper gold may then be more suited to your profile.
Buy paper gold
In comparison to the constraints linked to the purchase of physical gold, there is no doubt that the purchase of gold in paper form shares of gold companies, trackers, certificates, etc. is much simpler. Indeed, a few clicks from a brokerage platform are enough to place buy or sell orders.
Here is a recap of the main advantages of paper gold:
- Ease of order execution
- Overall lower fees compared to buying physical gold
- Custody fees (if applicable) generally much lower than the costs of storing physical gold
So would paper gold only have advantages? But this element is potentially decisive, especially from the perspective of an investor wishing to buy gold as an “ultimate” store of value. Indeed, paper gold is by nature an indirect purchase, that is to say, it is necessary to contact an issuer of securities to possess it.